HG Infra Engineering IPO receives total subscription of 44 per cent

The initial public offering (IPO) of HG Infra Engineering received 44 per cent subscription at the bidding process held recently. As reported, the issue had receive bids for 5,319,490 shares against the issue size of 12,137,070 shares. HG Infra Engineering is reportedly planning to raise Rs 300 crore from a fresh issue partly to fund capital equipment worth Rs 90 crore, repay a debt worth Rs 116 crore and for other general corporate purposes. The price band for the issue is fixed at Rs 263-270 a piece. The states of Maharashtra and Rajasthan account for over 95 per cent of the company's order book. The company offers EPC services on a fixed-sum turnkey basis and civil construction and related infrastructure projects on item rate and lump sum basis, primarily in the roads and highway sector. As reported, the company was working on 21 projects in this space, aggregating Rs 3,585.31 crore. The company is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH.